How does Hectagon investment process work?
How does Hectagon Investment Process work?
Since our Token Generation Event on 8th August, we have the first batch of $HECTA holders unlock their $HECTA through https://app.hectagon.finance/ and start Staking with the protocol’s early juicy APY.
A Pro-tip, do not rush to sell them. Keep Staking! Hectagon’s Investment Team has a plan in place to shortlist potential Web3 projects to invest in and will share more details with the community in the coming weeks. With the soft-launch of our Investment Portal at https://project.hectagon.finance/, projects can start to apply and raise funds with Hectagon. Full Investment Portal launching will be announced soon and bring more benefits to $HECTA holders.
To take advantage of the above opportunity together with ensuring the rights and benefits of the community, Hectagon develops a mechanism to make the process of evaluating and investing in these projects more efficient than ever.
To better understand the Hectagon investment process, please read the following steps:
Step 1: Application form
The project team can:
Fill in a simple application form at https://project.hectagon.finance/ and the project’s application will be put on a Waiting List for Hectagon’s Investment Team to review, or continue to complete the comprehensive form that contains detailed information about the project and go straight toward Community Upvote.
Step 2: Community Upvote
The project’s information will be automatically uploaded onto the Portal’s New Deal group where Community Members can upvote for the project they like. Two potential outcomes will happen:
+ With enough upvotes, the project will move to the Trending Projects section and get a priority review by Hectagon’s Investment Team.
+ If a project does not receive enough upvotes after a period of time, it will be transfer to the Tracking Database, where the project can decide when to promote itself with Hectagon community again for an upvote or wait for a potential review from the Hectagon’s Investment Team.
Step 3: Hectagon’s Investment Team review
The Investment Team will review projects in the following priority orders:
+ Trending Projects. (100% of the projects that arrive here will be reviewed)
+ Projects on the waiting list with referrals from a trusted source. (Hectagon’s partners or high-ranking members)
+ Projects in the Tracking Database
+ Other projects on the Waiting List
Step 4: Investment Council preparation
If a project passed the Investment Team review, a proposal of investment for the project will be prepared by the team to submit to the Investment Council (IC). The Investment Council will have the power to review the decision of the Investment team to Veto if necessary, if not the proposal will pass.
Before the IC meeting, the following actions will be taken:
+ The project will be published in a Reviewed Portal for Hectagon’s community to keep track of.
+ Community members will have 48 hours to provide any information they might have on the project that they think may help with IC’s decision. This information will be kept private.
+ The Investment Team will prepare an investment memo including any information provided by the community for the IC for each project.
Step 5: Community Review
If the Investment Council let the deal pass, it will go through a final check which is Hectagon community vote. The goal of this vote is for the community to act as the final check and balance for Hectagon Protocol and review the decision of the Investment team. If the community vote to Veto the investment will be canceled, if not, the investment proposal will be passed and the deal process will begin.
Step 6: Deal & Investment
The investment proposal will be announced to Hectagon’s community, the Investment Team will follow up with the project to sign the necessary agreement and proceed with the disbursing of the investment.
A report documenting the investment decision will be submitted to Hectagon’s DAO for bookkeeping purposes.
If a project is rejected by the IC, its information will be taken out of Hectagon’s Tracking Database, along with other projects that opt out of their own will. The project can always choose to re-apply for funding in the future.
The current target length of the fundraising process for each project is:
+ 1 week in the community upvote
+ 2 weeks between Investment Team review to Investment Council and Community Review.
This target will keep the total fundraising time for a project from Hectagon in under 3 weeks.
Important: The investment process of Hectagon will ensure members of the community have a strong voice in the selection of potential investments while not being bogged down by making too many decisions.
In addition, it will keep the fundraising process for Applicant as short and as close resemblance from a normal fundraising process from VC as much as possible.
Besides, if the workload becomes too much, Hectagon’s Investment Team can easily scale up with contributors from the community.
HIP04: Investment Process has been uploaded for community members to leave comments and opinions on Hectagon Forum. If you wish to take an important part in our future operation, we recommend you raise your voice. The final proposal will be voted on-chain by DAO.
Deadline to review on Hectagon Forum: 16 Aug 2022 00:00 PM UTC
Link here: https://forum.hectagon.finance/t/hip04-investment-process-ongoing/109
Linktree: https://linktr.ee/hectagonfinance
